HONG KONG (Reuters) – Production at China’s ZTE Corp is back to normal after the lifting of a U.S. ban and its carrier network business will return to a standard growth track in 2019, according to the firm’s newly elected chairman and chief executive.
A delivery man uses a phone near a building of China’s ZTE Corp in Beijing, China, August 29, 2018. REUTERS/Thomas Peter
China’s No. 2 telecommunications equipment maker was crippled in April when the United States banned American firms from selling it parts, saying the company broke an agreement to discipline executives who had conspired to evade U.S. sanctions on Iran and North Korea.
The ban, which became a source of friction in Sino-U.S. trade talks, was lifted in July after ZTE paid $1.4 billion in penalties, allowing the firm to resume business.
“As of today, the main operating business has resumed completely. The production mission for August has resumed to normal and R&D is resuming rapidly,” the Securities Times newspaper quoted Chairman Li Zixue as saying at a shareholder meeting at the company’s headquarters in Shenzhen on Tuesday.
ZTE confirmed the comments to Reuters on Wednesday.
As part of the settlement deal with Washington, ZTE, which relies on U.S. suppliers for core components, also overhauled its management team and appointed a new chief executive and chairman.
“We can definitely say the company is still in the front line in the communications industry,” CEO Xu Ziyang said at the…